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By Boyan Angelov
Aug 28, 2014

Mind Solutions, Inc. (VOIS) Spikes After Announcing New Product

Mind Solutions, Inc. (VOIS) unveiled its latest product yesterday. In a press release, VOIS made the announcement that the company has developed a mobile EEG/BCI device. The company included a photo of the device and explained its general properties. VOIS reported securing a patent pending status on the technology behind the EEG/BCI.

The reaction to this announcement was astounding, as VOIS spiked by 60% in price, closing at $0.0016 on a volume of 172,4 million shares trading hands. This made yesterday's session the most successful in nearly three month's time for VOIS. It should be noted, however, that the ticker reached the $0.003 mark at a certain point in yesterday's session, but the increased demand proved to be too high and the company shed 70% of its gains by the closing bell.VOIS_chart.png

This poses the question of whether or not VOIS can keep the momentum and maintain its positions on the charts. For pink tier companies, the risk is higher compared to other OTC penny stocks and they are all generally high risk. While there is no certainty as to what direction VOIS stock will take in the charts, a research into the company's recent history may help better evaluate its potential as a venture.

VOIS has been relying on convertible notes for maintaining its cash balance lately. Looking at the latest 10-Q submitted by the company for the period ended June 30, 2014, here is what the venture had to report:

  • Cash: $150,8 thousand
  • Total current assets: $282,2 thousand
  • Total assets: $298,9 thousand
  • Total liabilities: $8,2 million
  • Revenues: $18,8 thousand
  • Net loss: $1,4 million

The numbers are obviously not promising, as VOIS has accumulated a high net loss throughout the three months covered in the report. The company has barely generated any revenues, none of which are from product sales. The liabilities greatly outweigh the assets.

Besides the low numbers, there is a further issue around the penny stock's financial decisions. As VOIS disclosed in the report on page 21, $457,5 thousand of the net cash the company generated from financing activities in the past six months was received through proceeds from convertible notes. Under this means of financing, the company ended the last period with a low amount of cash on hand.

The latest financing VOIS reported about was entered into on July 22. An 8-K received on July 31 gave the details that the company had issued a convertible promissory note in the principal amount of $27,5 thousand to KBM Worldwide, Inc. The terms of the agreement put forth a risk of dilution, as the conversion price can be very low depending on the market price before the date of repayment. Such toxic financings can bring the value of VOIS stock crashing down.

VOIS_logo.jpgA further issue is the pump activity that recently went on in early July. The last time there were promotion campaigns for VOIS's stock a year and a half ago, the ticker crashed down the charts. This time around, the amount of compensation for the campaigns was much lower and VOIS addressed the issue which may have helped the company avoid the negative effects.

The red flags in VOIS's recent history call for investors to do their due diligence before considering the stock as an investment option.

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0.003

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